District staff to bring resolution asking board to cap tax increase at 4.7% for January vote

Mister Merlet (district staff) told the finance committee that administration will bring a resolution to the full board asking it to adopt a cap at or below the Act 1 adjusted index of 4.7% and not seek exceptions that could raise taxes above that level. He said the district’s adjusted index is 4.7% this year, the district’s fund balance was roughly $9.5 million at the end of 24–25, and administration plans to use about $2,786,000 of fund balance in the coming budget cycle.

The resolution, Merlet said, would be presented for a board vote at the January meeting. He explained that because the district received supplemental adequacy funding of more than $50,000, it is not eligible to seek Act 1 exceptions that would allow taxes above the index. "So that's why we are bringing this to you tonight," Merlet said, summarizing that passing the resolution would lock the district from going above the 4.7% index.

Board members asked clarifying questions about whether a referendum could be used to seek a higher increase and about uncertainty in next year’s revenue, including the governor’s proposal and assessment appeal outcomes. Merlet said the administration has not yet built the full budget and cannot say now whether taxes will need to rise in subsequent years; he stressed the recommendation was procedural—to adopt the resolution now so the district does not need to follow the accelerated budget timeline.

No formal vote on the resolution occurred at the committee meeting; the item was placed on the upcoming board agenda for a formal vote. The committee adjourned its finance session at 04:16PM.

Looking ahead, the district will return the resolution to the board for action at the scheduled January board meeting.